Forecast Error - What is the formula for forecast error?

Q: What is the formula for forecast error?

There are many standards and some not-so-standard, formulas companies use to determine the forecast accuracy and/or error. Some commonly used metrics include: Mean Absolute Deviation (MAD) = ABS (Actual – Forecast) Mean Absolute Percent Error (MAPE) = 100 * (ABS (Actual – Forecast)/Actual)

Answer

To find the prediction inaccuracy or accuracy, businesses utilize a variety of formulae, some of which are not so common. Here are a few measures that are often used: The MAD is the mean absolute deviation, which is calculated as ABS (actual - forecast). The formula for Mean Absolute Percent Error (MAPE) is 100 * (ABS (Actual - Forecast)/Actual)

Forecast Error - What is the formula for forecast error?

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